The “Be Your Own Banker” and “Infinite Banking” concepts are a financial strategy that promotes the idea of taking control of one’s finances by using whole life insurance as a personal banking system. The concept was popularized by R. Nelson Nash in his book “Becoming Your Own Banker,” first published in 2000. The idea – use dividend-paying whole life insurance, aka “Participating Life Insurance”, to finance personal and/or business expenses, and effectively loan your own money, to yourself, and collect the interest. This is accomplished by borrowing against your insurance policy’s cash value, while continuing to earn dividends. The policyholder can then pay back the loan with interest, which goes back into the cash value of the policy, thus replenishing the funds available for future borrowing. This creates a cycle of borrowing and repayment, allowing the policyholder to have access to a source of financing that is independent of traditional banks and financial institutions. Advocates of the “Be Your Own Banker” concept argue that it provides a safe and secure way to save money, grow wealth, and finance personal or business expenses, while also providing tax benefits and asset protection. I believe the concept is complete fiction, and misrepresents what can be a great product.